Since the volatility of 2008 Bank of America (formerly Bank of Italy) was given billions of tax payer money to provide loans. They did provide loans but not to the degree with which was thought. They acquired Merrill Lynch and Countrywide and then repackaged those residential MBS to other companies such as AIG. AIG has now placed a 28 Billion law suit on B of A today. This lawsuit is 200 pages done thoroughly with input from customers and former employees who spilled their guts on how evil this big bank is. B of A again last quarter B of A lost millions in mortgage losses as it continues to nickel and dime their customers, robo sign documents and other nefarious banking activities. 8.5 Billion was paid to other companies last quarter in a private settlement. Verily I say to any customer and speculator. Pull your money out of Bank of America and short it into oblivion. U.S. citizens will not permit the Fed to give more money to this bloated bank and they will fail. It will be catastrophic and you will make all of your money back and not lose it in the bank. David Tepper recently sold 14 million shares of B of A and I am sure that other hedge funds see the writing on the wall. Now on to the other point. With the recent S&P downgrade, weakness in the dollar and troubles in Europe, the Global Recession is beginning. This in itself does not bode well for big banks and their pecuniary needs and B of A will have to add capital or do a reverse split to stay where they currently are. As I type this B of A was just downgraded. The ghost of Countrywide continues to haunt this stock and rightfully so.
Disclosure: I am short BAC.